Warren Buffett's investment company, Berkshire Hathaway, owns shares of American Express, Costco, The Coca-Cola Company, Visa and Verizon, to name a few.
A remarkable American brand of list? Amazon
"There are a lot of games that I miss," Buffett told Yahoo Finance's chief editor Andy Serwer in an interview published Wednesday.
"I would have lost Microsoft even though I had met Bill [Gates] sooner or so. These are not my games, "Buffett said.
Although Buffett has not invested in Amazon or Microsoft, he said he does not consider these terrible mistakes.
"I do not worry about the things I miss that are outside my circle of competence to evaluate," said Buffett, who has been adverse to technology stocks (apart from Apple). "I've missed things that were inside my circle, and that's a terrible mistake, these are my biggest mistakes, you did not see them, but … it's not a mistake because I miss Netscape or something."
The octogenarian investor has often spoken about how important it is to have an area of expertise.
"Smart investing is not complex, although it's far from saying it's easy." What an investor needs is to properly evaluate the selected companies. all you have to do is evaluate the companies within your circle of competence, "Buffett wrote in his 1996 annual charter of shareholders." The size of this circle is not very important; However, it is vital. "
Buffett told Serwer, "Maybe 5% of companies or 10% of companies at most are inside an area, my circle of competence. They are something I should be able to understand."
Within his area of expertise, Buffett buys companies, or shares of companies, which he considers valuable.
"Your goal as an investor should be to simply buy, at a rational price, part of an easily understandable business whose earnings are virtually higher five, ten and twenty years from now," he wrote to shareholders. & # 39; Letter.
"Over time you will find only a few companies that meet these standards – so when you see one that qualifies, you must buy a significant amount of inventory. You should also resist the temptation to deviate from your guidelines: Wanting to own an action for ten years, do not even think about owning it for ten minutes. Build a portfolio of companies whose aggregate profits increase over the years, and so does the market value of the portfolio, "Buffett said.
As for Amazon, although Buffett has not invested, he has great respect for the business and its CEO and founder, Jeff Bezos.
"I've always admired Jeff," Buffett tells Serwer. "I mean, I met him 20 years ago, and I thought he was something special, but I did not know you could go from books to what happened there."
In fact, Bezos started Amazon as an online bookseller and turned it into a "everything store", with a market value of over $ 950 billion.
Bezos "had a vision and performed in an incredible way," says Buffett.
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Warren Buffett, president and CEO of Berkshire Hathaway.
David A. Grogan | CNBC